Coal and gas safeguard loopholes failing climate action
Expansion of coal and gas mines is made easier under the safeguard mechanism compared to brand new projects, potentially undermining Australia’s climate targets.
Nearly 20 million tonnes of greenhouse gas emissions could escape this “gap” analyzed by RepuTex on behalf of the Australian Conservation Foundation and the Climate Council.
Without tighter pollution rules on mine expansion and other safeguard failures, climate and environmental groups warn emissions reduction targets are at risk.
The safeguard mechanism takes over Australia’s 200-plus large polluting plants and forces them to reduce emissions according to legally binding limits (known as baselines), through real cuts through electrification or efficiency, or by purchasing carbon credits to offset their pollution.
Federal review of the plan will begin mid-year.
Australia has an obligation to reduce emissions under the international Paris agreement, which aims to limit dangerous global warming.
The safeguard mechanism is key to achieving Australia’s target of reducing emissions by 43 per cent by 2030 and 62-70 per cent by 2035.
The analysis, prepared by the energy modeling consultancy, suggests that households and other industries will shoulder a greater burden of emissions reductions unless coal and gas companies are required to do more.
The introduction of stricter rules on mine expansion is an opportunity.
Expanding footprints of existing areas can currently avoid stricter pollution limits on new green space projects.
Stronger pollution controls for new sites recognize that sites can be more easily built from scratch with low-carbon technology than refurbishment.
This is especially true for factories, but less so for coal mines, which have ready opportunities to electrify and stop methane leakage as sites expand.
Expansion of coal and gas is more common than new mine proposals, although both create carbon pollution.
NSW recently became the first state to ban new greenfield coal mines, but expansions are planned for at least another 25 years.
Climate Councilor and former BP executive Greg Bourne said coal and gas companies were getting a “free ride” while future-focused producers were working hard to make real emissions cuts.
“Every day we remain reliant on coal and gas, we risk energy price distress due to overseas conflicts and rising climate costs in a warming world,” he said.
“Closing the gaps in the protection mechanism will support a more resilient economy.”
Shortcut bases for coal have also been criticized because they ignore the huge variation in pollution created by each site, allowing some miners to take out credits they can sell without making real emissions cuts.
Systemic underreporting of fugitive methane at mine sites further increases the danger of exhausting emissions budgets.
